Most Common Deed Types
A deed is how a real estate title is transferred from one party to another in a real estate transaction. Since there’s more than one way to purchase a home, there are a few different types of real estate deeds you can use. We’ll outline three of the most common deeds used in real estate transactions so that your purchase or sale is as smooth as possible.
Quitclaim Deeds are often referred to as “as-is” deeds. The quitclaim deed transfers any interest, title, or claim the seller has to the buyer. In this case, there is no title search involved, which means it does not guarantee that the title is clean or valid. Quitclaim deeds can also be used to add or remove someone from the title in instances where a property is gifted to a family member without a traditional sale taking place.
General Warranty Deeds
Most home sales use a general warranty deed. This type of deed serves as a warranty that the property’s title is clean. A clean title shows the buyer that the seller has sole ownership to the property and that there are no other entities that have a claim or lien on the land or the home itself. To obtain a general warranty deed, a title search will be conducted by your title insurance company, who will then allow you to purchase a title insurance owner’s policy for further peace of mind and protection in the real estate transaction.
Special Warranty Deeds
Not all property titles are clean at the time of the sale which is why special warranty deeds exist. This type of deed is typically used to address defects to the title that occurred during the seller’s ownership of the home. Title defects need to be cured before you can purchase the property, and this deed helps make a smoother home purchase possible. It does not, however, grant full protection from future title claims, which is why it’s important to work with a professional title insurance company when purchasing a property with title defects.
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